B300 T500 Total % of % of Amount Total Amount Amount Total Amount Amount Activity-Based Costing System Direct costs: Direct materials $ 400,100 71.2 % $ 162,100 28.8 % 2$ 562,200 Direct labor 120,200 74.1 % 42,000 25.9 % 162,200 % % Indirect costs: Direct labor 124,670 59.4 % 85,214 40.6 % 209,884 Setups 31,160 20.8 % 118,900 79.2 % 150,060 Product sustaining 50,800 50.0 % 50,800 50.0 % 101,600 Total cost assigned to products $ 726,930 $ 459,014 1,185,944 Costs not assigned to products: Other 60,900 Total cost $ 1,246,844

When the cost of lost units must be assigned, and those some units must be ignored in an equivalent unit schedule, these units are considered a. normal and discreteb. normal and continuousc. abnormal and discreted. abnormal and continuous (Please give a brief explanation why the answer is correct)

“In decision making, full (absorption) costing approach has become entirely useless as it leads to wrong decisions”. Provide examples and evaluate the statement.

Suppose that Target uses FIFO costing method but decided to change to the LIFOmethod. What are the steps Target would take to account for and report the change?